Could you save money on your energy by switching?

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British Gas last week announced that it would freeze its standard energy tariff this winter, but customers should still shop around to take advantage of cheaper deals elsewhere.

SSE has already confirmed that it plans to cap its standard tariffs until April 2017. Standard tariffs are generally the most expensive energy tariffs available, so anyone looking to reduce the cost of their winter bills can usually make substantial savings by moving to an alternative deal. According to comparison site uSwitch.com, although British Gas’s standard tariff is the lowest of the big six suppliers – at £1,044 a year for a typical gas and electricity customer – it’s still £182 more expensive than the best deal on the market.

Energyhelpline.com spokesman Mark Todd said: “The British Gas price freeze is all about stemming customer losses and keeping lots of customers on what is still an expensive, very profitable tariff.”

British Gas and SSE’s standard tariff price freezes follow a spate of increases in energy costs in recent months. Five of the six big suppliers, along with several smaller providers have raised the cost of their cheapest tariffs since September, according to research by uSwitch.com.

E.ON has hiked prices the most, with the cost of its cheapest tariff having gone up by 34pc, from £760 to £1,015 a year. SSE and Scottish Power increased the cost of their cheapest tariffs by 24pc and 16pc respectively.

Stephen Murray, energy expert at MoneySuperMarket, said: “The price freeze from British Gas isn’t that surprising, especially after SSE’s similar announcement a couple of weeks ago, but in an ever-changing and volatile market, when prices are going up at a dramatic pace, this is good news.

“But remember, this only affects standard variable prices which remain amongst the most expensive tariffs, so consumers should still consider switching to a cheaper fixed deal. This means your price will stay the same for a fixed period and it takes away the worry that your bills might go up next month, or the month after.”

The increases are due to rising wholesale energy costs. These have soared in recent months following dramatic falls in sterling after the UK voted to leave the European Union back in June.

uSwitch.com energy expert Claire Osborne said: “Until the start of this summer, consumers hadn’t faced significant price rises for over two years, but we are now seeing more and more increases from suppliers big and small as rising wholesale prices continue to bite.”

Many people may be nervous of switching to smaller suppliers, after GB Energy Supply announced last month that it was going out of business. However, safeguards put in place by energy regulator Ofgem mean that if this happens, customers’ power supplies won’t be interrupted, and any credit balances will be safe. Last week Ofgem announced that Co-operative Energy has been appointed to take on GB Energy Supply’s customers.

Mr Todd said: “Customers don’t need to stay with Co-operative Energy and can switch away. All suppliers are accepting switches from customers who were previously with GB Energy Supply. Currently a typical customer who was with GB Energy Supply on their variable tariff can save about £200 by switching. We would encourage customers to shop around and start enjoying these savings before Christmas.”

If you are considering switching suppliers, remember that moving doesn’t involve any new pipes or meters, and no-one will need to call at your home. The whole process should only take 17 days, which includes a 14-day cooling off period. Ofgem is hoping to make the process even faster by introducing 24-hour energy switching by 2018.

The Telegraph Energy comparison tool provided by energy helpline takes into account your region, usage and payment method to find you the most accurate quotes.To find out if you could save click here or call us on 0800 542 7158

The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.

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*Savings calculated against the latest OFGEM Supply Market Indicator for average UK home energy bills. UK average dual fuel bill for next year calculated as £1,185 a year.

1.) Source: energyhelpline.com,
2.) All calculations are for an average usage dual fuel household paying by monthly direct debit.
3.) Average usage as defined by OFGEM is 12,000 kWh pa of gas and 3,100 kWh pa of electricity.
4.) Expected savings include the announced price rises.

To compare energy tariffs across the market and find the cheapest deal in your area, contact Telegraph Energy Switching on 0333 414 2671